$2
in 1940 →
$36.11
in 2019

Inflation Calculator

U.S. Inflation Rate, $2 in 1940 to 2019

According to the Bureau of Labor Statistics consumer price index, prices in 2019 are
1,705.54% higher than
average prices throughout 1940.
The dollar experienced an average inflation rate of 3.73% per year during this period.

In other words, $2 in 1940 is equivalent in purchasing power to $36.11 in 2019, a difference of $34.11 over 79 years.

The 1940 inflation rate was 0.72%. The current inflation rate (2018 to 2019) is now 1.52%1. If this number holds, $2 today will be equivalent to $2.03 next year.
The current inflation rate page gives more detail on the latest official inflation rates.

$2 in 1940 has the same "purchasing power" or "buying power" as $36.11 in 2019.

To get the total inflation rate for the 79 years between 1940 and 2019, we use the following formula:

CPI in 2019 - CPI in 1940CPI in 1940

×

100

=

Cumulative inflation rate (79 years)

Plugging in the values to this equation, we get:

252.776 - 1414

×

100

=

1,706%

Comparison to S&P 500 Index

The average inflation rate of 3.73% has a compounding effect between 1940 and 2019. As noted above, this yearly inflation rate compounds to produce an overall price difference of 1,705.54% over 79 years.

To help put this inflation into perspective, if we had invested $2 in the S&P 500 index in 1940, our investment would be nominally worth approximately $7,263.11 in 2019. This is a return on investment of 363,055.33%, with an absolute return of $7,261.11.

These numbers are not inflation adjusted, so they are considered nominal. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account.

The compounding effect of inflation would account for 94.46% of returns ($6,858.95) during this period. This means the inflation-adjusted real return of our $2 investment is $402.16.

Investment in S&P 500 Index, 1940-2019

Original Amount

Final Amount

Change

Nominal

$2

$7,263.11

363,055.33%

RealInflation Adjusted

$2

$402.16

20,107.82%

Data Source & Citation

Raw data for these calculations comes from
the Bureau of Labor Statistics'
Consumer Price Index
(CPI), established in 1913. Inflation data from 1665 to
1912 is sourced from a historical study conducted by political science
professor Robert Sahr at Oregon State University.

You may use the following MLA citation for this page:
“$2 in 1940 → 2019 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 21 Mar. 2019, https://www.officialdata.org/1940-dollars?amount=2.